Ditto the Zoom (2 or 4). Highly portable so you can easily record live at sessions. And fine for unaccompanied ballads and such.

All depends what you wish to achieve I guess, but homemade lo-fi recordings can have a certain 'charm' about them - or so I was told by the chap who runs Reverb Worship and put out a CD of traditional songs by this lass:

http://www.myspace.com/allinthemerrymonthofmay